Tax Scenario in Canada in compared to other developed countries
Every citizen in Canada is required to pay the taxes, with a very few exceptions. The taxes are to be filed by April 30 every year for the previous year. Anyone who has stayed here for more than 183 days in a calendar year should pay the taxes even if he is not a “permanent resident” of the country.
If you are staying in Canada for your company’s purpose then also your employer should give you “T4 slip” by 28th February of the next calendar year. This slip will give you a detailed idea of the taxes you are supposed to pay.
Taxes to be paid by Canadians are more than that paid by Americans. In fact, about a third portion of everyone’s income goes in paying taxes. In spite of this, the taxes are lesser than many other developed countries.
Not only that American is likely to increase the contributions for pension benefits but the pension amount would remain unchanged. However, here the pension amount is proportionate to the contributions made.
The cost of benefits extended to the citizens is actually covered by the taxes paid. Government spends almost 60% of the revenue collected through taxes in providing basic facilities like education, health care and unemployment insurance to the people of the country.
The health care cost is much lowers in compared to many other developed country like USA.
Those who earn the highest have to pay almost 50% of their income and this class comprise only 10% of the population. However, people with low income pay only 10% of their earnings.
Government does not levy any tax on winning a lotto for which other countries do charge a tax. There is no tax one gift received on property inherited or even when somebody gets a scholarship. Old Age Security pension, Expenditure on the child is also not taxed by the government.
Somebody who is willing and seeking to earn a higher degree or grade, raise children, make charitable and political donations can also expect a deduction in the taxes.
There is the option of deferring taxes by investing in registered Retirement Savings Plan.
Hence Canada offers innumerable benefits to the tax payers, ensuring to provide adequate facilities to the citizens of the nation against the taxes which are collected from common men.